All Forum Posts by: Greg O'Brien

@Russell Brazil the business loss, if any, would offset W2 up to the IRC 461 limits

@Nathan Gesner unfortunately its not a choice. Depreciation of any rental, even if allocated, is mandatory. The IRS pubs describe this. You’ll pay recapture if you choose to ignore it…”Allowed or Allowable” is the language.

@Kerry Baird one not is with REPS you are still trapped by the excess business loss limitations created by TCJA on W2 offsetts

@Daniel Dietz I think you are referring to SECURE ACT 2.0, passed on 12/30? If so, some changes begin 1/23 but after reviewing, a lot of changes are “phased in” 2024+ such as ROTH matches etc. Here is a great summary: https://www.kitces.com/blog/secure-act-2-omnibus-2022-hr-2954-rmd-75-529-roth-rollover-increase-qcd-student-loan-match/#:~:text=Beginning%20just%20a%20few%20days,only%20include%20pre%2Dtax%20funds.

@Michael Overall do you own the company or is this W2?

@Nathan Gesner spreadsheets can get you pretty far, but the entity type matters.

What we often see are STRs in partnerships but there is no balance sheet kept, or at best, its a PM balance sheet which doesn’t tie back to the partner’s capital accounts (due to asset/debt not being reconciled).

Since the IRS requires B/S reporting over the asset threshold, this is often a surprise to some RE partnerships at tax time. In all reality a real business needs a reconciled balance sheet anyways.

@Les Cullen do you have an option plan with NSOs? FMV of shares? You'd likely need legal help here if no Option Pool exists

@John Matthew Johnston 100000% not. Ive seen this guys “gems” before. Now 0/3!

@Brent L Wright unfortunately no. 401k is ordinary income

@Ike Unegbu its always a great idea to find a CPA team that specializes in your investment class or business niche. A lot of CPAs can be generalists but you’ll likely have a higher return on your investment finding a group that specializes in your niche!